Contributions to economic growth

Canadian colleges have demonstrated that they act as engines for economic growth within local economies. Colleges have increased human capital by producing graduates that have the specific technical skills required by the local economy. These graduates increase the productivity of businesses, leading to greater economic output and community wealth. These graduates also receive higher wages as a result of their education, leading to greater consumer spending within the economy. This economic growth is further bolstered by the direct economic impact resulting from wages and salaries paid to college faculty and staff. Taken in total, these drivers of economic growth have contributed approximately 8% of Canada's gross domestic product or the equivalent of about 1.25 million jobs in Canadian communities (Robison & Christophersen 2006: 55).

Decreased social problems and increased social savings

While Canadian colleges have evolved into institutions with a primary focus on economic development, they have nonetheless had considerable social impacts as well. Higher levels of college education among community members result in positive behavioral changes that improve community social conditions. In particular, increased college education in Canada is correlated with fewer smokers and alcohol abusers, decreased crime, reduced numbers of welfare recipients, increased participation in civil society, increased voting and greater degrees of tolerance (Canadian Council on Learning 2006: 42-46; Robison & Christophersen 2006: 39). These improved social conditions decrease the need for government spending in such areas as crime prevention, healthcare, addictions treatment and poverty alleviation. The savings are considerable. One year of community college operations in Canada generates approximately $344 million in public savings through avoided costs for addressing such social problems (Robison & Christophersen 2006: 39).

Significant return on taxpayers' investment

Government funding remains the largest single source of funding for colleges despite the increasing role of private funds. This is a considerable investment on the part of the Canadian taxpayer. Yet the Canadian college system represents an excellent investment for the taxpayer. Colleges increase provincial government revenues through the economic growth they generate and the social savings they provide. As a result, government investment in Canadian colleges yields a rate of return equal to 19%. enabling Canadian colleges to not only pay for themselves but generate a surplus that can be applied to other government programming (Robison & Christophersen 2006: 1).

Challenges Faced by the Canadian Community College System

The contribution of Canadian colleges to socioeconomic development has been significant. Yet continued contribution faces several key challenges. These challenges reflect the pervasive impacts of globalization that are increasingly being felt within Canadian communities and higher education institutions. Challenges faced by the Canadian college system include the lack of a mechanism for national performance measurement, the possibility of academic drift and the necessity of reconciling community-based social development with economic globalization.

The lack of a mechanism for national performance measurement

Decentralization is one of the key features of the Canadian college system. Combining provincial jurisdiction over higher education policy with local governance through Boards, Academic Councils and PACs has shaped the system into one that remains responsive to local needs. However, this decentralization, while effective in responding to diverse local education needs, has hampered the ability to measure performance of the entire college system on a national scale. Despite some efforts at the provincial level to develop performance measurement, to date there has been no significant pan-Canadian effort. Performance measurement has remained fragmented across the provinces. The lack of national performance measurements puts Canada's college system at a disadvantage globally. There is a need to be able to measure how Canada as a whole compares to other countries in its higher education performance if Canada is to remain competitive with these countries within a global, knowledge-based economy (Canadian Council on Learning 2006). Without a national mechanism to measure effectiveness, Canada will be unable to compare its higher education sector with those of competing countries and make the necessary reforms such comparisons dictate.

Academic drift

Given the need for a globally competitive workforce with appropriate credentials to compete in a knowledge economy, community colleges are increasingly involved in providing education at the Bachelor's degree level (Burke & Garmon 1995; Walker 2006). While this further broadens the comprehensive nature of college programming, it raises the question of whether colleges are drifting from their traditional areas